IFC Invests $70 Million in Colombia’s Financiera de Desarrollo Nacional (FDN) to support Infrastructure Development

Bogota, Colombia, April 3, 2014—IFC,
a member of the World Bank Group, will invest $70 million in Financiera
de Desarrollo Nacional (FDN), a Colombian financial development institution
that will play a pivotal role in promoting the participation of private
companies in Colombia’s efforts to revamp its infrastructure sector.
The investment is the latest example of the IFC’s support for Colombia’s
plans to sharply improve its infrastructure sector, which requires large-scale
investments over the coming years and which will increase the competitiveness
of the Colombian economy.
FDN was created by the Colombian government in 2011 with a mandate to bridge
some of the financing difficulties faced by large infrastructure projects.
FDN will provide long-term funding for some of these projects, which require
innovative financial products tailored to the needs of each project.
FDN will initially focus on infrastructure, but its plans are to eventually
branch out into other sectors such as energy, transportation and health.
“Colombia can feel proud of the vote of confidence that is being provided
by such a strong institution,” said Colombian Finance Ministry Mauricio
Cárdenas.
Clemente del Valle, President of FDN, said that the “capitalization will
allow us to increase our lending potential and to ensure that the financial
structures for infrastructure projects are more efficient. We are committed
to the success of this program and will work to ensure that resources are
available
In addition, FDN will build up local know-how through a special public-private
partnership unit that will focus on structuring infrastructure projects.
On October last year, IFC and FDN provided each $2 million to support the
creation of this unit.
This unit will support the development of well-structured public private
partnerships -- agreements between governments and firms to provide infrastructure
and public services—at the national and regional level.
“The infrastructure sector in Colombia has been a priority for IFC and
this investment shows that we continue to support Colombia’s efforts to
improve its infrastructure,” said Irene Arias, IFC’s Director for Latin
America and the Caribbean. “An effective infrastructure program between
the government and the private sector can be crucial for generating inclusive
economic growth and improving Colombia’s competitiveness. FDN will be
instrumental in making this happen and IFC is a long-term partner in this
endeavor,” she said.
In Colombia, IFC focuses on supporting sectors essential to social and
economic development, including natural resources industries, infrastructure,
health, education, agribusiness, and public-private partnerships to build
ports, roads, and airports. IFC helps leading Colombian companies modernize
and expand their businesses. IFC also promotes access to finance for micro,
small, and medium enterprises, and works on improving the investment climate
by simplifying regulations and royalty management.
To learn more about IFC in Latin America and the Caribbean, visit www.ifc.org/lac.
About IFC
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
www.ifc.org.